Home Energy Loan Program

Michigan Saves believes comfortable homes and low energy costs should go hand in hand. That’s why we created the Home Energy Loan Program, one of the most powerful tools in the country, designed to help you take control of your energy costs. With low-interest financing options available to residents across the state, there’s never been a better time to join thousands of Michigan families by making easy, affordable, smart choices to make your house an efficient home.

It’s as easy as 1-2-3


Select a Contractor

Select a Michigan Saves authorized contractor to get an estimate on qualifying energy improvements.


Apply for Financing

Once you have an estimate and your authorized contractor’s six-digit ID number, call 877-867-8522 to apply by phone.

Apply Online


Once the loan is approved, your contractor installs the improvements and is paid—after the work is completed to your satisfaction.

Home Energy Loan Program Frequently Asked Questions

What is Michigan Saves financing?

Michigan Saves financing is financial capital made available to customers through a network of lenders that offer favorable terms based on a negotiated contract. This program helps Michigan families reduce costs by financing air sealing, heating and cooling systems, insulation, appliances, and more. Homeowners make the upgrades with the help of our authorized contractors through an authorized lending partner.

What finance rates and terms are available?

Homeowners are eligible for rates ranging from 4.25% to 7% APR, though most customers finance at 5.50% APR. Terms are available up to twelve years with loan amounts accessible from $1,000 to $40,000. Actual rates, terms, and loans amounts are dependent on the lender you choose and your creditworthiness.

What can I use the financing for?

Most energy improvements can be financed, including renewable energy sources, but a full list of eligible improvements is available here. The most common residential improvements include insulation, air sealing, furnace or boiler replacement, windows, energy-efficient roofs, and appliances. Non-energy related improvements can be included in the financing if the improvement is necessary to complete an energy project.

Can I do the work myself?

Michigan Saves makes it easy to process authorized contractors and easy for your own contractor to become authorized. Whichever you choose, you can work with people you are comfortable with. Michigan Saves screens energy auditors and contractors to ensure they have applicable licenses, credentials, and insurance, and understand the financing process. If you are already working with or know a contractor, they can become authorized by Michigan Saves by filling out an application.

Eligible Improvements

The improvements listed below—subject to specified requirements where noted—are eligible for financing for qualified borrowers under the Home Energy Loan Program. This list is subject to change. Measures that are not included on this list may also qualify for financing if they are recommended through a home energy assessment conducted by a certified professional. See the Michigan Saves list of authorized contractors to find a certified energy auditor near you if you are interested in receiving a home energy assessment.


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AFUE: The annual fuel utilization efficiency is a thermal efficiency measure of space-heating furnaces and boilers. Furnaces are rated by the AFUE ratio, which is the percent of heat produced for every dollar of fuel consumed. The higher the AFUE rating, the lower the fuel costs. Any furnace with an efficiency of 90 percent or higher is considered high-efficiency and carries the ENERGY STAR® label.

BTU: The British thermal unit is a traditional unit of heat, which is defined as the amount of heat required to raise the temperature of one pound of water by one degree Fahrenheit.

COP: The coefficient of performance of a heat pump, refrigerator, or air conditioning system is a ratio of useful heating or cooling provided to work required. Higher COPs equate to lower operating costs.

EER: The energy-efficiency ratio is a metric used to measure how much cooling a system puts out for each unit of energy it consumes. EER is calculated by dividing an air conditioning unit’s British thermal unit (BTU) rating over its wattage. The higher the EER rating, the more efficiently the air conditioner operates. Any air conditioning unit with an efficiency of 12 EER or higher is considered a high-efficiency unit and carries the ENERGY STAR® label.

EF: The energy factor indicates a water heater’s overall energy efficiency based on the amount of hot water produced per unit of fuel consumed over a typical day. The higher the energy factor, the more efficient the water heater.

ENERGY STAR®: ENERGY STAR® is a government program that promotes energy-saving improvements by providing consumers with objective information about products. The ENERGY STAR® label indicates that a product uses less energy than other products in that category.

GPF: Gallons per flush is the measure of flow from a toilet. The lower the GPF of a toilet, the greater the savings of water.

GPM: Gallons per minute is the measure of flow from a showerhead or faucet. The lower the GPM of a faucet or showerhead, the greater the savings of water.

Level 2: Level 2 charging refers to the voltage that the electric vehicle charger uses (240 volts). Level 2 chargers come in a variety of amperages typically ranging from 16 amps to 40 amps. The two most common level 2 chargers are 16 and 30 amps, which also may be referred to as 3.3 kW and 7.2 kW respectively. These two amperages are the most common because they match the onboard charger on many current electric vehicles.

R-value: An insulating material’s resistance to conductive heat flow is measured or rated in terms of its thermal resistance or R-value—the higher the R-value, the greater the insulating effectiveness.

SEER: The seasonal energy-efficiency ratio is a metric used to measure how much cooling a system puts out for each unit of energy it consumes. The higher the SEER rating, the more efficiently the air conditioner operates. Any air conditioning unit with an efficiency of 15 SEER or higher is considered a high-efficiency unit and carries the ENERGY STAR® label.

SF: The solar factor measures the percentage of heat that passes through a solar panel’s glass. The higher the solar factor, the greater the solar gain for solar-thermal water heating units.

TE: Thermal efficiency is an efficiency measure for space-heating boilers, in lieu of the AFUE rating, that exceed 300,000 BTUs per hour. TE is also used to measure the efficiency of gas-fired water heaters that exceed 75,000 BTUs per hour.

Available Lenders and Offerings

Loan terms are one year for every $1,000 up to $4,999. For loans $5,000 and higher, customer may select term up to ten years (or higher if applicable). There are no annual or early repayment fees.

Lender FICO Credit Score Minimum Maximum Fixed Rate Terms (months) Counties Served
FreeStar Financial Credit Union 640+ $1,000 $4,999 5.25% APR 60 Genesee, Lapeer, Lenawee, Livingston, Macomb, Monroe, Oakland, St. Clair, Washtenaw, Wayne
$5,000 $15,000 5.50% APR 120
Genisys Credit Union 600-639 $1,000 $7,500 7.00% APR 120 All Michigan counties
640+ $1,000 $30,000 5.50% APR 120
720+ $15,000 $30,000 5.75% APR 144
Lake Michigan Credit Union 640+ $1,000 $30,000 5.50% APR 120 All lower peninsula counties
720+ $12,000 $40,000 5.75% APR 144
LAFCU 600-639 $1,000 $7,500 7.00% APR 60 Barry, Calhoun, Clinton, Eaton, Gratiot, Ingham, Ionia, Jackson, Livingston, Montcalm, Shiawassee
640+ $1,000 $30,000 5.49% APR 120
MSU Federal Credit Union* 600-639 $1,000 $15,000 7.90% APR 120 Entire lower peninsula for MSUFCU preferred contractor network
640+ $1,000 $50,000 5.90% APR 120
$30,000 $50,000 6.90% APR 180
Washtenaw Federal Credit Union 640-699 $1,000 $30,000 4.99% APR 120 Washtenaw
$30,001 $40,000 5.24% APR 180
700+ $1,000 $30,000 4.25% APR 120
$30,001 $40,000 4.50% APR 180

*Lender does not participate in the centralized loan application center. Please contact your contractor to apply.

Loan Calculator

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Loan Calculator

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Who’s Eligible? Summary Eligible Improvements To Apply Flyer and Details Promotion Ends
DTE Energy residential customers DTE Energy gas line extension costs may be financed when paired with at least one qualifying energy efficiency improvement Qualifying energy efficiency improvements Call: 877-867-8522

Program code: 8340

Click here Available until further notice
Lansing area residents (see details) Qualified customers include residential electric customers of Lansing Board of Water & Light who are also natural gas customers of Consumers Energy Qualifying energy efficiency improvements (excludes roofing, solar photovoltaic, and geothermal) Call: 877-867-8522

Program code: 8562

Click here November 30, 2019 or while funds available

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